Quick Ratio

The quick ratio measures a company’s ability to pay short-term obligations with its most liquid assets, excluding inventory.

At 0.18x, Target has $0.18 in liquid assets for every $1 of current liabilities, a level that signals potential liquidity strain. This sits far below the sector median of 0.73x, placing Target in the 6th percentile among peers—meaning 94% of sector companies have a higher quick ratio. Trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and only a single quarter’s value of 0.18x is reported. Without a trend, the investment risk centers on the low absolute level, which suggests higher short-term default risk unless cash flow or inventory turnover compensates; however, the lack of directional movement prevents a clear conclusion on improvement or deterioration. This metric contradicts the overall NEUTRAL verdict because the quick ratio’s weak level and bottom-quartile position typically warrant a more cautious assessment, but the verdict may reflect other offsetting factors.

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